Skip to content

Velocity Trader

Over the 64 trades in the model portfolio – 71.88% were profitable.

Velocity Trader

Jason Bond Weekly Windfalls Strategy | The next time you want to buy the dip – try this instead

Secure your Weekly Windfalls subscription with the lowest possible price right here: Weekly Windfalls Special Offer

I want to provide you with a simple technique that will allow you to take advantage of stocks when they experience a price pullback— this approach will help pinpoint when it’s time to be a buyer and get bullish.

“Buy the dip” is an expression that is set to describe a trader who has just bought shares of a stock that has experienced a sharp decline. The dip buyer believes that the selling pressure is overdone and that the stock is due for a bounce.

Of course, get it wrong, and it can be a painful lesson, a feeling some traders call: trying to catch a falling knife.

The problem with buying the dip is that you’re exposed. In other words, if you buy shares of a stock that just fell… and the sell-off continues, you could wake up with knots in your stomach and a feeling of disgust.

There’s a better way to buy the dip—one that avoids trying to “catch a falling knife”. In fact, I actually used this strategy to lock in a 49% return winner last week (in addition to 3 other winners from my Weekly Windfalls Strategy ).

It’s safer than buying the dip because it uses options to control the risk. And the leverage allows you to make big returns on small moves in large-cap stocks like Alibaba (BABA)

The next time you want to buy the dip… try this instead

At the beginning of last week, markets were a bit jittery with all the political uncertainty and the trade war.

We actually saw some weakness in some reputable companies… and I actually saw that as an opportunity to profit.

Here’s one specific setup I saw in Alibaba (BABA).

If you look in the daily chart from Finviz, you’ll notice the blue trendline. If you look at the daily candlesticks, the rising trend is pretty well established. Every time, BABA made higher lows and followed that blue line pretty closely.

As a technical trader, the reliability of trends in large caps is much better than small caps. You see, BABA is a good company, and anytime there is an opportunity to buy shares on the cheap, traders gobble up all that edge.

In other words, large-cap stocks tend to hold true to technical analysis.

So the technicals lined up… and there was also a catalyst as well.

BABA took a beating with the trade war news and got dragged down by the market to the low $160s.

However, we knew Trump was meeting with China and I assumed between Tuesday when BABA touched that blue trend line… and the end of the week, it would bounce off it.

From another technical standpoint… BABA was trading in a rising channel.

If you notice, BABA has been trading between those two lines in the chart above… and I figured BABA would bounce off that lower trend line and trade higher.

So did I go out and buy shares?

No, that would’ve been a huge capital suck and I wouldn’t be trading efficiently.

Instead, I used a simple options strategy.

It’s what’s known as a bull put spread.

Basically, it’s a strategic options position that uses a combination of put positions to bet a stock will move higher.

All you really have to know is that in general, this strategy stacks the odds in your favor because you can profit in multiple scenarios:

– If the stock goes up

– If the stock trades sideways

– If the stock falls a little

The only thing that you really need to happen is for the stock to stay above a level.

In this case, I sold the $165 puts and bought the $162.50 puts (that was my hedge).

So that meant I was betting BABA was going to stay above $165 by Friday.

The position in the yellow rectangle is what you want to focus on here.

Since I sold the $165 puts, someone who bought from me was betting BABA would stay below $165. At the time, BABA was trading at $163!

But I figured the drop in BABA was an overreaction… and when people panic, I tend to see it differently… rather than letting the emotions get to me, I just follow the technicals.

Just by doing that, I was able to lock in $6,400 in BABA… and more than $20K overall using my Weekly Windfalls Strategy.

If you want to hear more about the trade and strategy, watch the recording of my Facebook live video from the other day!

 

[Ed. Note: Jason Bond runs
JasonBondPicks.com and is a swing trader of small-cap stocks.  In 2015 he earned a 180% return on his money. Then in 2016 he turned a $100,000 account into $430,000!
Discover How He Did It]

Source: JasonBondPicks.com | Original Link

Author John GladstonPosted on October 14, 2019October 29, 2019Categories Jason Bond PicksTags catalyst, Day Trading Success, Fish Hook, How to become a successful day trader, Jason Bond Freedom Trader, Jason Bond Freedom Trader Complaints, Jason Bond Freedom Trader Fraud, Jason Bond Freedom Trader Login, Jason Bond Freedom Trader Pasr Results, Jason Bond Freedom Trader Past Performance, Jason Bond Freedom Trader Price, Jason Bond Freedom Trader Real User Review, Jason Bond Freedom Trader Refund, Jason Bond Freedom Trader Review, Jason Bond Freedom Trader Reviews, Jason Bond Freedom Trader Scam, Jason Bond Freedom Trader Website, Jason Bond Millionaire Roadmap, Jason Bond Millionaire Roadmap Customer Review, Jason Bond Millionaire Roadmap Review, Jason Bond Millionaire Roadmap Reviews, Jason Bond Millionaire Roadmap Scam, Jason Bond Millionaire Roadmap User experience, Jason Bond Penny Stock Playbook, Jason Bond Penny Stock Playbook Review, Jason Bond Penny Stock Playbook Scam, Jason Bond Picks, Jason Bond Picks Customer Review, Jason Bond Picks Review, Jason Bond Picks Reviews, Jason Bond Picks Scam, Jason Bond Picks User Experience, Jason Bond Swing & Long-Term Trading, Jason Bond Swing & Long-Term Trading Customer Review, Jason Bond Swing & Long-Term Trading Review, Jason Bond Swing & Long-Term Trading Reviews, Jason Bond Swing & Long-Term Trading Scam, Jason Bond Swing & Long-Term Trading User Experience, Jason Bond Ultimate Penny Stock Guide, Jason Bond Ultimate Penny Stock Guide Discount, Jason Bond Ultimate Penny Stock Guide Real User Review, Jason Bond Ultimate Penny Stock Guide Review, Jason Bond Ultimate Penny Stock Guide Reviews, Jason Bond Ultimate Penny Stock Guide Scam, Jason Bond Ultimate Penny Stock Guide User Experience, Jason Bond Ultimate Penny Stock Playbook, Jason Bond Ultimate Penny Stock Playbook Discount, Jason Bond Ultimate Penny Stock Playbook Free Download, Jason Bond Ultimate Penny Stock Playbook Real User Review, Jason Bond Ultimate Penny Stock Playbook Review, Jason Bond Ultimate Penny Stock Playbook Reviews, Jason Bond Ultimate Penny Stock Playbook Scam, Jason Bond Ultimate Penny Stock Playbook User Experience, Jason Bond Ultimate Strategy Course, Jason Bond Ultimate Strategy Course Discount, Jason Bond Ultimate Strategy Course Real User Review, Jason Bond Ultimate Strategy Course Review, Jason Bond Ultimate Strategy Course Reviews, Jason Bond Ultimate Strategy Course Scam, Jason Bond Ultimate Strategy Course User Experience, Jason Bond's Weekly Windfalls, Jason Bond's Weekly Windfalls Complaints, Jason Bond's Weekly Windfalls Fraud, Jason Bond's Weekly Windfalls Login, Jason Bond's Weekly Windfalls Price, Jason Bond's Weekly Windfalls Refund, Jason Bond's Weekly Windfalls Review, Jason Bond's Weekly Windfalls Reviews, Jason Bond's Weekly Windfalls Scam, Jason Bond's Weekly Windfalls Website, Making Money with Jason Bond Picks, Nathan Bear, Nathan Bear Millionaire, Nathan Bear Millionaire Roadmap, Nathan Bear Millionaire Roadmap Login, Nathan Bear Millionaire Roadmap Review, Nathan Bear Millionaire Roadmap Reviews, Nathan Bear Millionaire Roadmap Scam, Nathan Bear Millionaire Roadmap Success, Nathan Bear Picks, Nathan Bear Picks Login, Nathan Bear Picks Real User Review, Nathan Bear Picks Review, Nathan Bear Picks Reviews, Nathan Bear Picks Scam, Nathan Bear Picks Trade, Nathan Bear Picks User Experience, Nathan Bear Picks Website, Nathan Bear Raging Bull, Nathan Bear Results, Nathan Bear Scam, Nathan Bear Trader, Nathan Bear Trading Chat, Nathan Bear Trading Room, Penny Stock Playbook Free Download, Real-Time Swing & Long-Term Trade Alerts, stock pickimng service, Stocks Under $10, The Horizon, The Horizon Review, The Horizon System, The Horizon System Review, Weekly Windfalls, Weekly Windfalls Complaints, Weekly Windfalls Fraud, Weekly Windfalls Login, Weekly Windfalls RagingBull, Weekly Windfalls Refund, Weekly Windfalls Review, Weekly Windfalls Reviews, Weekly Windfalls Scam, Weekly Windfalls Website, Why You Need to Trade Stocks with an Experienced Community, winning small cap swing trades, Your experience with Jason Bond Pick

Post navigation

Previous Previous post: Nathan Bear Weekly Money Multiplier Service | 3 stocks on my radar this week
Next Next post: Petra Picks PLATINUM Program | How to use LEAPS in Trading
Velocity Trader > Jason Bond Picks > Jason Bond Weekly Windfalls Strategy | The next time you want to buy the dip – try this instead

Tags

  • charts
  • Dow Jones
  • ETFs
  • GS
  • Jeff Bishop Review
  • learn to trade options
  • markets
  • NASDAQ
  • Option Rocket Kyle Dennis
  • Option Rocket Review
  • Option Rocket Reviews
  • Option Rocket Scam
  • options
  • Options Rocket Kyle Dennis
  • Options Rocket login
  • Options Rocket Review
  • Options Rocket Reviews
  • Options Rocket Scam
  • Options Rocket User experience
  • Options Rocket user review
  • Options Rocket webinar
  • Options Rocket website
  • options trading
  • options trading newsletter
  • options trading strategies
  • options trading tips
  • options trading webinar
  • option trading
  • option trading strategy
  • Russell
  • S&P
  • SPX
  • SPY
  • squeeze
  • strategies
  • trading
  • understanding options trading
  • VIX
  • Weekly Money Multiplier
  • Weekly Money Multiplier login
  • Weekly Money Multiplier Real User Review
  • Weekly Money Multiplier Review
  • Weekly Money Multiplier Reviews
  • Weekly Money Multiplier Scam
  • Weekly Money Multiplier User Experience

Tech Melt Up

One Percenter

Warrants

Teeka Tiwari's Investment of the Decade

Teeka Tiwari's Investment of the Decade

Blitz Tracker

CRISIS INVESTING 2020: Emergency Briefing

Insider - Asymmetric Investing Service

The Smartest Investment Strategy of All Time - Bill O'Reilly and Alex Green

Recent Posts

  • Teeka Tiwari Freedom 2021: How Anyone Can Turn $100 Into $150,000
  • Project Mastermind 2021: Is Louis Navellier’s Event Legit?
  • What Is The Pre IPO Code by Jeff Brown? Is It Legit?
  • Whitney Tilson TAAS Stock Pick: Obscure stock group returns 570% on average
  • Jason Bond’s 3 Simple Chart Patterns – How they work?

Top 7 Trading Resources

Best Trading Advice

Steady Income Investments

Crypto News

Options Trading Strategies

Top Marijuana Stocks

FREE Trade Alerts

Best Blockchain Stocks to Buy

Velocity Trader Proudly powered by WordPress